It's A Buyers Market For Panama City Apartments

reveal | Jul 5, 2010 |

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The Panama City condo market has received a great deal of press attention in recent years. And for good reason: The market experienced a sustained boom period between 2002 and 2008 with condo tower after condo tower launching in prime areas such as Balboa Avenue and Punta Pacifica and across the town. Many of the purchases were pre-construction (or off plan) and heavily financed.

Since the global economic downturn, the character of the Panama City real estate market has changed. There is a growing oversupply risk, inventories are high, sales volumes are down and some projects have suspended operations. Some market watchers are saying this is the perfect time to get into the market. That vendors are motivated and there are some great deals to be had. Some even talk about taking advantage of a 'second chance' opportunity to get into the Panama City market at bargain prices – as much as 50% less than pre-boom levels.

There could be some truth in this. The country as a whole is weathering the financial storm better than its regional neighbors. Major infrastructure projects are planned, Panama City's standing as the regional financial hub is secure, and economic indicators are positive.

But as with all property investments, it makes sense to proceed with caution. It's one thing to take advantage of a buyers market, it's quite another to be seduced by the discounts on offer and lose perspective of what constitutes genuine value. Here are some tips to help you move forward with researching apartments in Panama City with minimum risk:

First avoid pre-construction or off-plan purchases and stick to completed condos in apartments that have the majority of their inventory sold. It makes sense in this market to buy quality by concentrating in the prime areas of town. Remember to spend the time to get access to re-sale opportunities (ie sales from individuals) as these may be available at lower prices than developer-direct sales. To find thease deals you'll need to build a network of local real estate agents who are well connected to seller. As there is no MLS for real estate in Panama, the extent to which you'll be able to access the best deals will depend greatly on the local contacts that you have.

It's exciting times for international real estate investing in Central America. The prices are attractive and there is a great deal on the market. But before you plunge in make sure you are comfortable with the risk/reward balanace you are getting into.